ITR 5 Form for Income Tax Filing

Filing income tax return is not only mandatory, but it should also be a responsibility of each one of us as a citizen of the country. For filing the tax returns, it is very important to know which ITR form should one file according to his income and his profession. ITR 5 Form is one of the tax return forms that are to be used by specific parties.

Table of Content

ITR 5 is for Whom?

Form ITR 5 is an income tax return form that can be used by person being an AOL, LLPs, BOI, firm, artificial juridical person referred to in section 2(31)(vii), persons referred to in section 160(1)(iii) or (iv), registered societies, local authority and cooperative society.

Who is not eligible to file Form ITR 5?

If a person is required to file tax return u/s 139(4A) or u/s 139(4B) or u/s 139(4C) or u/s 139(4D) or u/s 139(4F), he shall not use form ITR 5.
The form should not be used by people if they are:

How to file ITR 5 Form?

Taxpayers who earn more than Rs 5 lakh and pay taxes have to furnish their ITR by online and offline mode. To submit their ITR 5 form, taxpayers can use either offline option or the online one. For taxpayers whose accounts are liable to audit u/s 44AB, it is mandatory that the return is filed online under the digital signature.

Taxpayers can also file the ITR by transmitting the data in the tax return electronically and then submit the verification of the return in the ITR-V of the Return Form. However, in this case, the taxpayer has to print two copies of the ITR-V. One copy of the ITR-V has to be duly signed and sent by ordinary post to CPC Bengaluru while the other copy can be retained by the taxpayer to keep a record.

Understanding each of the Schedules

Calculation of income under the head “profit and gains from business or profession.”

Schedule-DPM

Calculation of depreciation on plant and machinery under the Income-tax Act

Schedule DOA

Calculation of Depreciation on other assets under the Income-tax Act

Schedule DEP

Summary of depreciation on all the assets under the Income-tax Act

Schedule DCG

Calculation of deemed capital gains on sale of depreciable assets

Schedule ESR

Deduction under section 35 (expenditure on scientific research)

Schedule-CG

Calculation of income under the head Capital gains

Schedule-OS

Calculation of income under the head Income from other sources

Schedule-CYLA

Statement of income after set off of current year’s losses

Schedule-BFLA

Statement of income after set off of unabsorbed loss brought forward from earlier years

Schedule-CFL

Statement of losses to be carried forward to future years

Schedule-10A

Calculation of deduction under section 10A

Schedule-10AA

Calculation of deduction under section 10AA

Schedule-10B

Calculation of deduction under section 10B

Schedule-10BA

Calculation of deduction under section 10BA

Schedule-80G

Details of donation entitled for deduction under section 80G

Schedule-80IA

Calculation of deduction under section 80IA

Schedule-80IB

Calculation of deduction under section 80IB

Schedule- 80IC/ 80-ID/ 80-IE

Calculation of deduction under section 80IC/ 80-ID/ 80-IE

Schedule-VIA

Statement of deductions (from total income) under Chapter VIA

Schedule-SI

Statement of income which is chargeable to tax at special rates

Schedule-EI

Statement of Income not included in total income (exempt incomes)

Schedule-IT

Statement of payment of advance tax and tax on self-assessment

Schedule-TDS2

Statement of tax deducted at source on income other than salary

Schedule-TCS

Statement of tax collected at source

Validation Rules of ITR Form 5

There are three categories of defect for which validation process is to be carried out at the e-filing or CPC end in ITR 5.

Let’s look at the categories of the defect and the action that is to be taken during the validation process:

Category of Defect

Action to be taken

A

Return will not be allowed to be uploaded, and an error message will be displayed

B

Return data will be allowed to be uploaded, but the taxpayer will be notified of a possible defect present in the tax return u/s 139(9). Appropriate communications or notices will be issued from CPC Bengaluru.

C

The third party utility providers will be signalled about the unstable quality of the data, and they will be warned about the future prohibition of the utility.

Sequence of Filing ITR 5

This form needs to be filed in a particular sequence. This sequence has to be as follows:

Part A: This is the first thing that you have to fill in the form. It requires general information to be filled by the tax filer.

Schedules: After filling in the basic information, tax filer needs to fill in the details of different schedules appropriately.

Part B: This part includes all the computation of the total income as well as the calculation of tax liability on the total income.

Part C

Verification: After filling out the parts and schedules of ITR 5, a verification declaration has to be duly signed and attached to the form along with the schedules.

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